Business Structures

Question 1

Why is competition limited in an oligopoly?

Revolt · Accepted Answer

High entry costs prevent new producers from entering the market.

Question 2

If consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited?

Revolt · Accepted Answer

Choices are driven by price when goods are identical.

Question 3

Which is an example of a government monopoly in the United States?

Revolt · Accepted Answer

the US Postal Service

Question 4

In pure competition, producers compete exclusively on the basis of

Revolt · Accepted Answer

selling identical items.

Question 5

Natural monopolies occur when one producer

Revolt · Accepted Answer

can meet the market’s entire demand.

Question 6

Which best describes how the government sanctions technological monopolies?

Revolt · Accepted Answer

by issuing a patent for the technology

Question 7

MonopolisticPure competitionAn oligopoly

Revolt · Accepted Answer

Monopolistic

Question 8

The market for which item generally involves pure competition?

Revolt · Accepted Answer

corn

Question 9

In the United States, which type of industry is often considered part of an oligopoly?

Revolt · Accepted Answer

cell phone carriers

Question 10

When an oligopoly exists, how many producers dominate the market?

Revolt · Accepted Answer

a few

Business Structures Answers